TK Kerstetter—founder of Boardroom Resources and formerly Chairman of NYSE Governance Services—gets it. He has spent the last twenty years in board education and development. Consequently, he has a pretty good understanding of what boards do well and where many fall short. Unpreparedness and lack of expertise are two notable areas of weakness amongst directors in corporate boardrooms, according to director surveys. Kerstetter acknowledges these points in this video before moving quickly to suggest three things that can lead to improved board performance.
In case you didn't take notes, the three recommendations are board evaluations, shareholder communications and leadership in the boardroom. Kerstetter's recommendations are consistent with the conclusions that have emerged from my four-year study of boards and the board's influence on company performance. If boards are to exert influence over the performance of the company they govern, directors need to be competent; have a sense of purpose; be actively engaged in board practices; and, work together. The board also needs to exert a constructive form of control over management. My findings will be published in 2016. If you would like to know more about my research including the implications for board practice, please get in touch. In the meantime, enjoy Kerstetter!
Thoughts on corporate governance, strategy and the craft of board work; our place in the world; and, other things that catch my attention.